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Cash buyers represent record number of California purchases

March 7, 2011 - Investors and relocating families took advantage of affordable conditions in California and purchased a record number of properties with cash in January.

A report from MDA DataQuick showed 30.9 percent of homes sold in January were purchased without a mortgage, the highest amount since the data firm started keeping track in 1988. It was also an increase from 28.9 percent in December and 28.5 percent a year mealier. Buyers could be reacting to record-low home prices as well as the difficulty many are having in securing a home loan.

"For the past couple of years all-cash deals have become far more common in lower-cost markets where prices have dropped sharply, luring investors and other buyers who either can't qualify for a traditional mortgage," said the report. "Moreover, using cash can get you to the head of the line if there are multiple offers on a property, given sellers favor the relative speed and certainty of all-cash transactions."

The median sales price for homes in the state was $160,000 in January, said the report.

Other Western markets have also seen high levels of cash buyers, as the firm reported Las Vegas also set a record for a high percentage of all-cash purchases in January at 54.5 percent.
 

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